United Kingdom Employment Tribunal

Brian Kaye Ellis v Myrum Meltzer (Charges and charging orders : Subrogation) [2018] UKFTT 53 (PC) (21 December 2017)

By oversight, on completion of a sale of a Property the solicitor (Applicant) failed to secure the discharge of one of 2 charges - balance of the completion monies (after redemption of the other mortgage) were paid to HM Revenue & Customs. After Respondent adjudged bankrupt Applicant paid a sum equal to the monies paid to HMRC to the bank to secure the discharge of 2nd charge. Applicant then proved in the bankruptcy as an unsecured creditor and received a dividend of part of his debt. Applicant registered a unilateral notice against Respondent's matrimonial home claiming to be subrogated to the rights of the bank, which held a charge against that property, to secure the balance. Held the unilateral notice be cancelled as the Tribunal was not satisfied that the enrichment Applicant relied upon was unjust and/or that subrogation was an appropriate remedy and because the Applicant had surrendered any claim to security by his proof in the bankruptcy.

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